Everyone should purchase life insurance no matter how old or healthy they are. In fact, if you're young and are as healthy as you've ever been, then buying life insurance now is a smart idea since you're premiums won't cost as much. When it comes to your life insurance options, most personal insurance companies in New Jersey offer two main versions - term life insurance and whole life insurance.
Term life insurance requires you to pay a set amount over a specific period of time in order to receive a special death benefit. Both the premium and death benefit stay the same over that period of time. If you pass away during that time, your relatives receive the death benefit. If you don't, the policy ends after the period is up. Term life insurance usually lasts between 5 and 35 years.
Whole life insurance is permanent. This means that as long as you keep paying your premium, which is constant, your death benefit will be guaranteed. Whole life insurance will also generate cash value. This means that you can get a low-interest loan from the cash value of your whole term life insurance. However, the premium and the death benefit will not and cannot change once you've purchased the policy.
Whole life insurance is more expensive, but once term life insurance is up, you may find yourself having to pay even more in order to purchase another policy. For more information about personal insurance companies in New Jersey, contact CCW Insurance.